Viennese kugelhopf is particularly small; if possible bake the given quantity of dough in three 6-1/2-inch (16-cm) kugelhopf pans.
Grease pans.
Stir 1 teaspoon granulated sugar into warm milk and sprinkle with yeast.
Let stand 5 minutes or until the surface is frothy.
Stir gently to moisten any dry particles remaining on top.
Sift flour into a large bowl.
Melt butter; cool slightly.
Beat butter, remaining granulated sugar, egg yolks, salt and cream in a medium bowl until frothy.
Stir in yeast mixture with seedless golden raisins, rum and lemon peel.
Pour into flour mixture, combining to make a dough.
Beat egg whites until stiff.
Fold into dough.
Beat mixture until it bubbles.
Turn into greased pans, filling each two-thirds full.
Cover and let rise in a warm place 15 minutes.
Preheat oven to 400°F (205°C).
Bake 15 minutes.
Reduce oven temperature to 375°F (190°C).
Bake 45 minutes or until a skewer inserted in center comes out clean.
Turn out cakes onto racks to cool.
Sift powdered sugar over cooled cakes.